Have you been wondering what will tariffs do to automotive prices in Canada and Alberta?
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“The Government of Canada will be responding by matching the U.S. approach with 25 per cent tariffs on all vehicles imported from the United States that are not compliant with CUSMA, our North American free trade agreement,”
shares the Prime Minister, Mark Carney speaking about tariffs during a news conference on Parliament Hill in Ottawa on Thursday, April 3, 2025. (cited)
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Is President Trump considering pausing auto tariffs?
U.S. President Donald Trump on Monday, April 14 2025, suggested that he might temporarily exempt the auto industry from tariffs he previously imposed on the sector, to give carmakers time to adjust their supply chains. This would include Chrysler, Dodge, Jeep, RAM, FIAT and other Stellantis manufacturers.
“I’m looking at something to help some of the car companies with it,” Trump told reporters gathered in the Oval Office. The Republican president said automakers needed time to relocate production from Canada, Mexico and other places, “And they need a little bit of time because they’re going to make them here, but they need a little bit of time. So I’m talking about things like that.”
Matt Blunt, president of American Automotive Policy Council, an association representing Ford, General Motors and Stellantis, said the group shared Trump’s goals of increased domestic production.
“There is increasing awareness that broad tariffs on parts could undermine our shared goal of building a thriving and growing American auto industry, and that many of these supply chain transitions will take time,” Blunt said.
Did you know US$2.5 billion worth of goods and services cross the border every day?
Canada and the United States have the world's most comprehensive and dynamic trading relationship, which supports millions of jobs in both countries.
What are the tariffs on Canada now?
On March 4, 2025, U.S. tariffs of 25 per cent on Canadian goods and 10 per cent on energy and potash exports from Canada to the U.S. came into effect. On March 12, 2025, the U.S. imposed tariffs of 25 per cent on Canadian steel and aluminum products.
On April 3, U.S. tariffs of 25 per cent on Canadian automobiles came into effect, targeting the auto industry and the more than 500,000 Canadians this industry supports across the country.
The U.S. also intends to apply 25 per cent tariffs on certain automobile parts before May 3. Under the U.S. tariffs certain exclusions linked to U.S. content may be available, specifically, the application of the 25 per cent tariff only to the value of the non-U.S. content in automobiles and auto parts that qualify for preferential tariff treatment under CUSMA.
What do the tariffs apply to?
The tariffs apply to: